How can Financial Performance Become a Core Pillar of Sustainability?

Both Geopost and Orange have set ambitious net zero targets. What drives this commitment, and how are you aligning financial goals with sustainability?  

Dominique Mamcarz: At Geopost, we’re committed to achieving net zero by 2040 ​౼​ a full 10 years ahead of the Paris Agreement. At the end of 2023, we shifted away from a carbon neutrality approach, which relied on carbon offsetting, and instead focused, first and foremost, on reducing carbon emissions, with the goal of reaching 90% reduction by 2040 before offsetting the rest. 

Reducing emissions by 90% means drastically changing how we operate. One key initiative is our commitment to fully decarbonising our fleet by 2040. Transitioning to electric vehicles and biofuels will be a significant step forward, especially since road transport currently accounts for 90% of Geopost’s emissions.  

In order to make major shifts like this, we implemented a carbon budget, setting annual CO2 emission limits tied to CapEx and OpEx¹, an approach that integrates sustainability into financial planning.  

Constance Gest: At Orange, we made bold ESG commitments focused on environment, trust and digital inclusion in our strategic plan, Lead the Future. Like Geopost, we’ve also set our sights on achieving net zero by 2040. To get there, we realised that finance and sustainability teams must work hand in hand ౼ meaning embedding sustainability objectives into financial processes.  

In 2023, we took a major step forward by creating a sustainable finance position focused on coordinating various finance teams to embed sustainability into budgeting, strategic planning and investment decisions.  

Reducing emissions by 90% means drastically changing how we operate. - Dominique Mamcarz, Director of Sustainability at Geopost

A change this major doesn't just happen overnight. What were some of the biggest challenges you faced?  

Victor Limousin: When we started bridging the worlds of finance and sustainability, communication and just being able to understand these two concepts across teams was a challenge. We needed to create a shared language and build a sustainable finance community within Geopost. This empowered teams to share best practices, accelerating progress instead of reinventing solutions for each member of the Geopost network. 

Dominique: And let’s not forget that, traditionally, finance and sustainability are two different worlds. Our sustainability team had to learn on their feet ౼ adapting and learning financial processes. 

Constance: We faced the same challenge of “speaking the same language.” Initially, many on the finance team didn’t understand ESG concepts or how they impacted financial trajectories. Training was crucial to align teams and make sustainability integration intuitive. We also highlighted the financial benefits ౼ after all, we found that reducing CO2 emissions often improves financial performance as well. 

How were you able to strike a balance between “feasibility from an operational perspective” and “positive impact”? 

Constance: Bold decisions are easier to push when they make business sense ౼ and are backed by key stakeholders, which is why we work closely with our executive board.  

We also found that regional differences matter a lot ౼ decarbonisation goals in Africa and the Middle East often differ from those in Europe due to market conditions. With this in mind, we’re combining financial and sustainability metrics to set region-specific targets ౼ and while our methodology is still evolving, we’re improving every day. 

And let’s not forget that finance and sustainability traditionally work in silos! Our sustainability team had to learn on their feet ౼ adapting and learning financial processes. - Dominique Mamcarz, Director of Sustainability at Geopost

Olivier: Expanding on what Dominique just mentioned, members of the Geopost network submit carbon budgets each year covering two aspects: operational levers ౼ for example the number of EVs, biofuel usage, renewable energy contracts ౼ and financial investments. This allows us to compare each business in our network at a global level and optimise investments based on cost-effectiveness and decarbonisation impact.  

You each spoke of leadership, what role does that play in driving sustainability?  

Victor: We are witnessing an industry wide shift toward aligning financial goals with sustainability. At Geopost, we introduced carbon budgeting and now we’re assessing CO2 reduction costs and prioritising investments based on effectiveness. But lasting impact requires everyone onboard at every level ౼ especially leadership. 

Constance: I couldn't agree more. Sustainability must be embedded at the highest levels. If the CEO prioritises it, the company will follow. It’s a transformative topic that requires executive commitment to succeed. 

Dominique: Speaking of leadership, Geopost is proud to be the first logistics company with SBTi-validated net zero targets ౼ a bold ambition that goes beyond us. The certification process is tough, requiring us to assess our direct emissions and the emissions of our entire supply chain. With 92% of our emissions in Scope 3², collaborating with our partners across the board is absolutely critical.   

Sustainability must be embedded at the highest levels. If the CEO prioritises it, the company will follow. It’s a transformative topic that requires executive commitment to succeed. - Constance Gest, Head of Investor Relations & Financial Communication at Orange Group

What’s your vision for taking finance and sustainability to the next level?  

Constance: Olivier just mentioned Scope 3 emissions, which for Orange is a major focus as well, accounting for over 80% of our carbon footprint. We launched Partners to Net Zero Carbon, an engagement program with top suppliers to drive decarbonization. This initiative involves working closely with suppliers to set reduction targets and track progress. 

Dominique: Beyond carbon budgeting, at Geopost, we are ensuring sustainability is embedded in investment decisions. For every new depot or hub, the sustainability team now provides input to key decision makers in the investment committee to guarantee that they integrate environmental criteria into the project design. 

Olivier: Scaling up is another big challenge. Pilot projects have proven successful, but now we need to expand our EV fleet, build charging infrastructure and integrate advanced tools like the Geopost Carbon Calculator to manage finance and sustainability together.  

Moving from insights to action with Geopost  

A key takeaway from this conversation? Aligning financial goals with sustainability isn’t just possible, it’s essential. Bold leadership, collaboration and smart planning are driving real progress toward net zero, setting a blueprint for the future of sustainable business. 

Keep an eye out for the upcoming 2024 Geopost Sustainability Report!

Sources 

1. CapEx (Capital Expenditures) includes investments in long-term assets that help a business grow over time ౼ such as equipment, infrastructure or technology.  OpEx (Operating Expenditures) includes costs of day-to-day operations ౼ such as as salaries, utilities and maintenance. 
2. GHG Protocol. Scope 3 emissions are all indirect emissions – not included in Scope 2 – that occur in the value chain.